In light of OPEC and its allies’ decision to reduce oil production, the ripple effect will soon be apparent at US gas stations. This unexpected move by OPEC+ to slash oil production by over 1.6 million barrels per day starting in May will impact consumers in various ways. The rise in both Brent crude futures and WTI benchmarks by approximately 6% on Monday trading indicates the immediate impact of this decision.
As a consumer, you may start noticing the effects faster at the gas pump. Gasoline futures have already seen an increase, which will likely translate to higher prices for US drivers sooner rather than later. With RBOB gasoline prices up roughly 8 cents per gallon in morning trading, an increase of about 3%, consumers may see a spike in gas prices ahead.
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“I think OPEC is reawakening the inflation monster,” stated Tom Kloza, global head of energy analysis for OPIS. The White House and consumers may feel the impact of OPEC’s decision. With US gas prices already at $3.51 on Monday, Kloza predicts a potential rise to $3.80 to $3.90 in the near future due to OPEC’s move.
While we may not reach the $5 mark, there is a possibility of surpassing last year’s prices by the end of the summer, especially with potential disruptions like hurricanes along the Gulf Coast. Our software development services can help your business navigate and adapt to changing market conditions seamlessly.
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To mitigate the impact of OPEC’s decision, the US has plans to release additional oil reserves from the SPR. Furthermore, increased US oil production and refining capacity are positive factors. However, the 1 million barrel per day cut by OPEC+ will not be easy to compensate for. By collaborating with us, your business can leverage our technology maintenance services to optimize your operations and navigate industry uncertainties successfully.
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